Historical Background of Property Rights
I. Private property is the right of individuals and
businesses to own means of production.
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The last clause of the Fifth
Amendment to the U.S. Constitution guarantees all Americans the right
to own private property.
II. Private property is an essential part of the Market
Economy:
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In Traditional
and Command Economies
, the major means of production (factories, farms, etc.) are owned by groups
of people or the government.
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In a market economy, individuals own means of production.
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Private ownership gives people the incentive to use property
to produce goods that will give a profit.
III. Adam Smith describes the
advantages of private ownership in his book, The Wealth of Nations.
Briefly summarize Smith’s beliefs of the "invisible hand".